Iranians Planning to Create Environmental Catastrophe in Hormuz Strait – SPIEGEL ONLINE

By Erich Follath

Iran could be planning to create a vast oil spill in the Strait of Hormuz, according to a top secret report obtained by Western intelligence officials. The aim of the operation is to both temporarily block the vital shipping channel and to force a suspension of Western sanctions.

…..Western intelligence experts speculate that Jafari’s planned operation is an expression of growing frustration. ……..Iran derives more than 50 percent of its government revenue from oil exports, which declined from about 2.4 million barrels a day in July 2011 to about 1 million barrels in July 2012…….Iran can hardly sell its oil because of the embargo. Even countries that don’t feel bound to uphold the sanctions are shying away from deals, because no one wants to insure the oil shipments……

via Iranians Planning to Create Environmental Catastrophe in Hormuz Strait – SPIEGEL ONLINE.

Iran Lawmakers Press Ahmadinejad on Economy – WSJ.com

By BENOÎT FAUCON

The rial has shed about 25% of its value against the dollar this month amid mounting sanctions aimed at halting Iran’s nuclear program. The sudden decline in the rial last week, the latest leg in a yearlong decline, prompted Tehran’s first major riots in two years and a crackdown on informal money changers. The situation appeared to have stabilized Saturday as Tehran’s bazaar—a key indicator of Iran’s business climate—reopened after closing for the second half of last week. But in an indication the turmoil may not be over, many money changers refused to trade Sunday, either out of fear of arrest or because of a refusal to comply with a government order imposing a fixed dollar rate……

via Iran Lawmakers Press Ahmadinejad on Economy – WSJ.com.

Commodities rally “fragile”

WSJ: Why Are Commodities Rallying During Slow Growth?

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Here’s The Real Reason The Price Of Crude Oil Is So Strong

This month’s decoupling of oil from other risk assets, could be foretelling skittishness over recent events in Iran and Syria (where a growing chorus is calling for action against Assad’s brutality), and even over today’s report from the AFP that thousands of Kuwaitis stormed parliament after demanding the prime minister’s resignation.

Additionally, borderline hostile rhetoric towards Iran after a recent explosion at a missile base is putting more focus on their tensions with Israel…..

via Here’s The Real Reason The Price Of Crude Oil Is So Strong.